Classic car owners can cash in on the low value of sterling

A strong euro means there is a ready market for British owners of
good-condition, left-hand drive cars to sell on the continent.

John Glynn, Glass's Guide: Cars that might benefit from such a scenario could include anything from a 1980 Ferrari 308 GTB to an early '90s BMW M3 Cabriolet [E30 model]'

By David Williams

1:48PM GMT 20 Mar 2010

Classic car owners prepared to sell their cars to overseas buyers could cash in on the depressed value of sterling.

A report by Eurotax Glass's says that sellers of good-condition, left-hand-drive cars have found the European market offering a "great return" on investments made before 2008, when the value of the euro was just under €1.50 to the pound.

Now close to parity with sterling, the euro is so strong that it offers Europeans a "great chance to make a killing on a classic", says Glass's.

Now this could equally benefit Britons looking to sell their cars.

John Glynn, Older Car Editor at Glass's, said: "A car purchased in Europe three years ago for €22,000 [£14,800], and sold today at the same price it was bought for, would bring in £20,000 - a tidy profit for the vendor of £5,200 after three years.

"Cars that might benefit from such a scenario could include anything from a 1980 Ferrari 308 GTB to an early '90s BMW M3 Cabriolet [E30 model].

"With many classic car values having risen by about six per cent year-on-year since 2007, profits might be even higher.

"The same €22,000 car could now be worth about €26,000 or £23,800, which would equate to a £9,000 return on investment."

Glass's cites the example of Richard Jackson, who three years ago collected his 1982 Porsche 911 Turbo from Switzerland, and who has just sold his classic to a European buyer.

The increase across the two transactions equated to almost 11,000 euros, with the weakened pound pocketing Mr Jackson a profit of just over £10,000.

It's not just private owners who are reaping the rewards of high demand from the euro-zone, says Glass's. Dealers are also reporting strong sales of most left-hand-drive cars.

Many deals are done before cars have even entered showrooms, and some long-standing stock is catching the eyes of buyers in Europe and the USA.

Adds Glynn: "Classic cars are a great investment tool, if you know the market and you enjoy cars. The exchange-rate effect means the UK may lose some lovely machinery this year, which will sadden some enthusiasts but it cannot be avoided.

"Of course, it also means there will be an appetite among successful sellers to acquire replacement models, which will stimulate the UK market once again."